The dollar index stays near 101.75, pressured by hopes of a diplomatic breakthrough with Iran and bearish technical signals.

The US Dollar Index (DXY) failed to build on Friday’s modest bounce from the 101.60 area and opened the week with fresh selling pressure. By the early European session the index was trading around 101.75, down more than 0.20% on the day, as markets digested renewed optimism that talks between Iran and Qatar could ease tensions in the Strait of Hormuz.

Geopolitical backdrop

• Iranian negotiators met Qatari mediators for a third day on Sunday and offered a two‑day plan to reopen the Strait of Hormuz if U.S. conditions are met
• President Donald Trump said the talks were progressing and that Iran wanted a deal, which lifted risk appetite and reduced demand for the dollar as a safe‑haven
• Trump has not ruled out further military action after the November 3 mid‑term elections, keeping a geopolitical risk premium alive

Technical picture

• The index remains below the 100‑hour simple moving average (SMA) at 102.10, signalling a bearish intraday tone
• MACD has slipped into negative territory while the RSI hovers around 41, suggesting weakening momentum
• Immediate support sits at 101.60, above the October monthly swing low; a break below 101.45 could open a path toward the 100‑day SMA near 100.70

What traders are watching next

• Whether the Iranian‑Qatari talks produce a concrete opening plan for the Strait of Hormuz, which could shift safe‑haven flows
• Upcoming U.S. macro data this week that may influence Fed expectations and the dollar’s direction
• Potential Fed rate‑rise signals in December that could provide a tailwind for the DXY

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• Usd edges lower as risk sentiment improves ahead of us midterm elections
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• Silver price edges higher at $50, eyes next resistance

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This article is compiled from international market news for information only. It is not investment advice.